Uganda Private Sector Growth Remains Strong

The Stanbic Bank Uganda PMI dropped to 53.1 in December 2024, down from November’s three-month high of 55.7.

Despite the decline, the latest reading remained above the series average of 52.7, signaling an improvement in business conditions for the ninth straight month.

Further increases were seen in both output and new orders, in each case extending the current periods of expansion to nine months, buoyed by new client acquisitions.

In response, firms ramped up their purchasing activity and inventories.

Efforts to secure inputs were helped by a shortening of delivery times.

However, employment fell for the second month, and backlogs of work rose for the first time in four months.

Turning to prices, input costs continued to rise, driven by higher prices for materials, leading to a fourth consecutive monthly increase in output prices.

Finally, businesses remained optimistic about the economic outlook, amid planned investment and expectations of strong consumer demand in the coming year.